Sec 40a(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2012 please clarify the following question

if i purchase following items from "x" party

sand 26000
jelly 25000
marum 28000

we pay to "x"
sand 20000
jelly 20000
marum 20000

in a single day for separately expenditure wise,

please enplane sec 40a(3) above situation

CA Nagesh Diddi

CA Nagesh Diddi (Expert)
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14 February 2012 as per provision of 40A(3), any expenditure incurred by assessee in respect of which a payment or aggregate of payments made to a person in a day otherwise than by an accountant payee or bank draft exceeds Rs.20,000, no deduction shall be allowed.
So your example ll be hit by this provision.. And no deduction ll be available as payment is made to one person exceeding Rs.20000. In a single day

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2012 Thank You Sir

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